CPO price likely to remain in the RM1,400–RM1,650 band

PALM oil prices are likely to trade between RM1,400 and RM1,650 per tonne for the rest of this year on higher global demand and supply tightness, particularly with a boom in the use of oils and fats as biofuel in Europe. 

Thomas Mielke, director of global commodity analysis and market research company Ista Mielke GmbH, which publishes OilWorld, said the extent of the impact of big industrial users and power plants in Europe using palm oil as biofuel and as a substitute for mineral oils was not reflected in the current movement in crude palm oil (CPO) prices.